Two Texas consumer organizations, AARP Texas and Texas Watch, applauded Lt. Governor David Dewhurst for proposing stronger penalties on insurance companies that refuse to lower their rates. Dewhurst made his comments at a recent speech to a realtors’ group.
In an announcement AARP Texas and Texas Watch encouraged Governor Rick Perry to declare insurance reform an emergency issue for the 2005 legislative session.
“We believe that stronger penalties must be imposed to force companies to lower their premiums,” said Gus Cardenas with AARP Texas.
Two years ago, Governor Perry made homeowners insurance reform an emergency issue. At the time he said, “We must lower rates, continue to stabilize the insurance marketplace, end unfair pricing practices, and stop fraud and abuse within the system.”
“If insurance reform was an emergency issue two years ago, it should definitely be an emergency issue today,” said Alex Winslow, program director for Texas Watch. “More than 1.5 million Texas homeowners have not seen any rate relief, insurance companies are still using unfair underwriting practices, and the insurance industry is not taking the reforms passed by the 2003 Legislature seriously.”
The groups stressed that consumers are eager to work with state leaders to finish the job of true insurance reform. AARP Texas and Texas Watch will send a letter to Gov. Perry formally encouraging him to make insurance reform an emergency issue for the 2005 session.
“We are looking forward to working with the Governor, Lt. Governor, Speaker and the many lawmakers dedicated to insurance reform,” AARP’s Cardenas said. “Texas families have waited long enough, and we must act now.”
After a court ruling that declared the process the state used to order rate reduction last year unconstitutional, insurance company spokespersons said that more “dialogue” is needed before they lower their rates.
“Texas families don’t need more discussion from the insurance companies – they need action,” said Texas Watch’s Winslow. “The insurance companies have tried to talk the talk, but now it is time to see them walk the walk.”
Topics Texas
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